Here’s part of a comment I gave I thought worth passing on:
And both raising taxes and cutting spending stimulate the economy less, but giving tax cuts to the wealthy doesn’t solve the problem of high unemployment, because the rich don’t hire more people the more money they have, they hire more people the more demand there is for their products and services. Putting money in the hands of the poor that spend every dime they get to get by creates the most demand. Supply side economics is just lopsided, you can’t bolster the investment class enough to make up for people not having enough money to buy things. As someone said at a TED talk, there aren’t enough rich people to power a great economy because while he (the speaker) makes a few hundred or a few thousand times the average income, he doesn’t buy a few thousand pairs of pants or drive a few thousand cars or eat out a few thousand times a month. Giving to the rich doesn’t stimulate the economy, at least not by itself.
Imagine you’re bill o’reilly. You make ten million a year and you think it sucks that you have to pay a big chunk of that in taxes. But imagine if that money went to a works program and got millions of people working again, or any of a dozen programs to lessen poverty and strengthen the middle class – your taxes might not go down any, but a lot more people will be able to afford cable, and more viewers = more money. The poor and middle class are the grass on which businessmen graze – pouring a little water on them every so often isn’t a bad thing for anyone.